09-359CouncilFile u ���j��
Greensheet# J��p� �/�
RESOLUTION
�
2
3
4
5
6
�
e
9
io
ii
12
13
�4
is
is
17
18
19
20
21
22
23
24
25
26
27
28
29
30
37
32
33
34
35
36
3�
38
39
40
41
42
43
44
45
46
47
48
49
50
51
Page t ot z
WHEREAS, the License and Permit Fund 320 experienced a significant reduction in building permit and
plan review revenue in 2008; and
WHEREAS, the Department of Safety and Inspections revised downward their revenue projections for buiiding
permits and plan review by over 25% in the 2009 adopted budget; and
W HEREAS, the Department of Safety and Inspections has been closely monitoring their building permit and plan review
revenue during 2009; and
WHEREAS, revenue estimates (see attachment A) indicate that building permit and plan review collections are lower than
expected during the 1 st quarter of 2009; and
WHEREAS, the Mayor, in accordance with Section 10.07.03 of the City Charter, recognizes, as indicated in attachment B, thai
revenues in the License and Permit fund will be insufficient to meet the amount originally appropriated and recommends the
following changes to the 2009 budget (additional detail included in attachments C and D) :
Funtl Activity Object Description
SPENDING CHANGES
Fund 320 - License and Pertnits
Consolidate Management of C/encal Support Function
320 - 33353 - 0711 Full Time Certified
320 - 33353 - 0439 Fringe Benefits
CURRENT AMENDED
BUDGET CHANGES BUDGET
1,306,043
455,622
Consolidate Management of Divisions
320 - 33351 - 0711 Full Time Certified
320 - 33351 - 0439 Fringe Benefits
Conso/idate Financia/ Management
320 - 33353 - Ot 11 Full Time Certified
320 - 33353 - 0439 Fringe Benefits
Realign Hentage Preservallon (POSitions absorbed by PED)
320 - 33351 - 0111 Full Time Certified
320 - 33351 - 0439 Fringe Benefits
Institute Other Economies and Cost Savings
320 - 33350 - 0111 Full Time Certifed
320 - 33350 - 0432 Unemployment Compensation
320 - 33350 - 0439 Fringe Benefits
320 - 33357 - 0117 Trades
320 - 33351 - 0299 Other Miscellaneous Services
320 - 33357 - 0432 Unemployment Compensation
320 - 33351 - 0438 Fringe Benefits for Trades
320 - 33351 - 0439 Fringe Benefits
320 - 33353 - 0174 Full Time Appointed
320 - 33353 - 0299 Other Miscellaneous Services
320 - 33353 - 0432 UnemploymentCompensation
320 - 33353 - 0439 Fringe Benefits
464,759
1,134,100
1,306,043
455,622
464,759
7,134,100
602,711
1,537
214,172
2.761,277
77,494
8,463
345,312
1,134,100
41,470
39,106
455,622
(72,977)
(23,457)
(96,434)
(74,182)
(23,413)
(97,595)
8,224
3,473
11,697
(100,082)
(31,589)
(131,671)
(3,731)
29,432
(1,756)
(119,893)
(10,000)
14,716
(30,756)
(70,157)
(5,440)
(30,000)
44,148
(2,560)
(185,997)
7,233,066
432,165
390,577
1,110,687
1,314,267
459,095
364,677
1,102,511
598,980
30,969
212,416
2,647,384
7,494
23,179
314,556
1,063,943
35,970
9,106
44,148
453,062
Councii File # V � � �/�
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
Presented By:
Green Sheet #
52 FINANCING CHANGES Page 2 of 2
53 Fund 320 - License and Permits
54 320 - 33351 - 2800 Permits 5,345,080 (425,000) 4,920,080
55 320 - 3335'I - 4074 Plan Checking 1,022,402 p5,000) 947,402
56 (50Q000)
57
58 TOTAL SPECIAL FUND SPENDING CHANGE (500,000)
59 TOTAL SPECIAL FUND FINANCING CHANGE (500,000)
60
6'I Be it RESOLVED, that the Ciiy Council approves the amendments as indicated above, and adopts the revisions to the 2009 budget
Requested by Department of:
Adopted byCouncil: Date "J/dyfG
Adoption Certi£ed by Council Secretary:
By:
ApprovE
By:
-�...GQ.
By: CNV ' `���� `�1' ""
Approved by the Office of Financial Services
By:
Approved by Ciry Attomey
BY� �1 GLf� I IYt� (^�l/
Approved by May for Su issi to Coun '
By:
r� �j � � { �d` � � �
n� heet Green Sheet Green Sheet Green�et Green Sheet Green Sheet �
Ixl-�i�l
DepartmentlO�ce/Council: Oate Initiated: i � ✓
i S � _Dept.ofSafeiy8�lnspections z4MAR-09 � Green Sheet NO: 3068924
� � Deoartment SentToPerson Initial/Date �
ConWM Person & Phone: �
Robert Humphrey y o�ept of Saferi & Inspections I
266-9123 1 e tofSafe & ections De artmentD'uector
Assign Z wancial Services ffice Financial Services
I Must Be on Council Agenda by (Date): Number �
For 3 i Attorne
Routing � 4 avor•s Office Ma or/Assistant
Doc. Type: �SOLUTION W/$ Ortler � 5 �ooncil ' Couucil
TRANSACTION b i Clerk C" Clerk
E-Document Required: Y
Document Contact:
Contact Phone: .
Totai # of Signature Pages _(Clip All Locations for Signature)
Action Requested:
Approval of a budget amendment to reduce spending and fmancing in License and Peimit fund 320.
Recommendations. Approve (A) or Reject (R): p¢rsonal Service Contracts MusS Answer the Foilowing Questions:
Planning Commission �, Has this person/firm ever worked under a contract for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this person/firm ever been a city employee?
Yes No
3. Does this persoNfirm possess a skill not normally possessed by any
current city employee?
Yes No
Explain all yes answers on separete sheet and attach to green sheet.
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
Advantages If Approved: , \
Spending and Financing will be reflective of current economic conditions \
Disadvantages If Approved: I
Disadvantages If Not Approved:
Budgeted spending will not match expected actual revenues.
Total Amount of
Trensaction: CosURevenue Budgeted:
Po�ding Source: Activity Number:
Financial Information:
(Explain)
March 25, 2009 12:16 PM Page 1
:�.
�s
CHRISTOPHER B. COLEMAN
Mayor
Mazch 25, 2009
CITY OF SAINT PAUL
OFFICE OF THE MAYOR
Council President Kathy Lantry
and City Councilmembers
Room 310 City Hall
Saint Paul, Minnesota 55102
Dear Council President Lantry and City Councilmembers,
d �( ° �J��1
In accordance with City Charter section 10.07.03, I am writing to notify you that building
permit and plan review revenues are now estimated to be insufficient to meet the
appropriated expenditure levels in Fund 320. The purpose of this memo is to describe
both the deficit and my recommended resolution to the problem.
Fund 320, the License and Permit Special Fund, is the major source of funding for the
Department of Safety and Inspections (DST), representing 66% of the Deparhnent's
annual budget at approximately $11.0 million in 2009. Fund 320 has a number of
different revenue sources, some of which are fairly constant and predictable such as
business licensing fees, building trades licensing, and elevator inspections. On the other
hand, the fund also contains approximately 28 construction permit related revenue
sources which reflect building activity and vary in relation to the economy.
While permit revenues have been relatively reliable in recent years, current economic
conditions have significantly impacted this revenue stream. You may recall that we
adjusted the budget for this fund twice during fiscal year 2008 due to revenue shortfalls.
At the same time, we also adjusted our revenue assumptions downward. The adopted
2009 budget had what seemed at the time to be very conservative revenue estimates for
2009.
We are now estimating that revenues will decline an additional7 percent, or $500,000 in
2009. Financing for the fund will be insufficient to meet City Council adopted spending
appropriations.
In recent months we have used fund balance, spending controls and vacancy management
to reduce spending. Because we have masimized the capacity of these strategies to solve
any addirional deficit, my recommendation for resolving the current revenue shortfall
involves both permanent restructuring strategies and temporary spending reductions. The
attached documents provide greater detail on following changes I am recommending:
CITY HALL
SUTTE 390
SAINT PAUL, MINNESOTA 55102-1615
0
651/266-8510
AA-ADA-EEO Employer
b� �35�
Council President Kathy Lantry and City Councilmembers
March 25, 2009
Page Two
• Consolidate management of divisions
• Consolidate management of clerical support
• Consolidate and reorganize financial management
• Reduce inspection-related expenditures
In addition to the above changes, I am directing the Deparhnent of Planning and
Economic Development (PED) to use their existing spending authority for personnel for
Heritage Preservation. This will move 2 FTEs from DSI into PED. PED has sufficient
vacancies in their department to manage this realignxnent without impact staff or
workloads.
I am also directing DSI and the Office of Financial Services to both monitor pexxnit
revenue on a monthly basis and to talk to our partners to better understand the outlook for
this revenue stream in the coming months. The purpose of this monitoring is to keep
everyone fully informed on the status of our revenue stream if we need to take additional
action, although I am hopeful we won't have to make further reductions.
I want to thank Department and Council staff, along with all of you who have provided
input into these recommendations. These changes will position the Department to
respond more quickly and proficiently to future economic impacts (whether positive or
negative).
If you have any questions, you may contact Margaret Kelly, Director, Office of Financial
Services, or Bob Kessler, Director, Department of Safety and Inspections.
Sincerel
n ���
� �
Christopher B. Coleman
Mayor
C: Deputy Mayor Ann Mulholland
Margaret Kelly, Director, OFS
Bob Kessler, Director, DSI
Scott Cordes, OFS
�
�
�
�
�
U
�
r..�
.�.a
�
�
H
W
�I
�
�
�I
�
F
z
w
�
F
�i
�
a
w
a
bq ��51
0
0
�
M
U
�
W �
` .4
S N
U °p
Q a
�
Q
N
C
O
� d
' N.
7 �
m
�
�
N �
T
d �
N
N N
� O
(/1 Y
i C
� £
� �,
` (6
Q
d
G
O
�
�
�"1
N V1
O
0
0
m
V
0
m
ca
.
N
O
N
N
O
0
0
0
O
�
m
ti
m
�
V
0
0 0
N N
M M
L C
J 3
LL LL
N (E �
U V
N a� R
o_ a £
� �
m �
m �
c�a 'u N
i � C d
R y C L
E N 'i m
£ s
3 V
N �
U �C
b �
LL m
V C
3 '�. O
a � �,
w � o �
£ O ry N
N 6
m � �
N C
C � R C
ry N
� 'j O O
= o .-
� W V d
� v � z
3 � `ti v
` ., y
° 'o N
O - n ' L
C
° � N 3
N y - �
> � `-' �
v m v L
pp � V O.
� N N Q
� � a
� �
N „
) O �
W '
c a v "
= y � �
O � p�p �
N
w � � �
�
o - E O
c y
pp R � v
C —
@
t V C p_
� � '_ o
w � t6
� � '6 6
a _'p v
m '° c m
3 � O O
,� o
1 m � V
d � � 3
9 m a
0 3 � v
_ '>
3 C � �
- - ° ;r
°' � � o
? O ' d
� � c Q
� a v
m
.c � £ �
u ' Y �
� '^ O p_
3 v � o .
m
� � Y v �
. m p � °
' °- N �
� o Q £ °'
v d o �
� r h G y
� � w �
j O V '�
v d a v
c a c v
a� m y
� £ � m m
° m o � o
N m
� n � a
m m 3 1 O a
m E o � o
� v m o a
� � a o
v - o m v ¢
°' o a £ `
a � N �
d � y � �
_ > y � s
C C t W 3
O R ry y pp
- a �
� = 3 0 -
v c .. 3
O. b0 N C +�
c '^ a °_ i
C �+
'6 � O
q m m � v
> C C
ai � ° o a�i
6
H � � > N
p V yp
o a v � �
� '`a m v R
m u� v a �
� 3 = m �
n N 'd a. �
N 3 2 N C
❑ u � x w
� � �V Y Y
d
C
u
�
a
3
a
O
.�
�+
N
�
6y
m � �N N I
� O M M
v ,
c o E � c
3 N N tLL {L I
LL
° m
W C
� m
U �
� Q
O
O
J
m
L
V
F�
c
�V �
L m
N L
c ro
LL z
rn V
° o
N
L
a y
L pp
a t
a m
h s
m u
N
O
a
N
U
U
0
W
£
m
m
�
i
a
.
O
u
N
N
Y
0
3
0
R
W
3
v
�
v
R
�
O
O
Y
3
U �
m m
N p�
a �c
� N
o °'
s �
3 �
'o �
V �
v �
Q o
� o
� �
¢
O �
a —
z �
c
O L
i n
s m
� E
0 0
° 3
v �
Y y
d
i 0
� C
w o
y '_
m
u� - a
s o
3 �
c �
o v
V a
w �
0
`o v
a £
a o
H V
u 3
w v
U V
H C
c �'
N �
� v
� �
a N
N
� `
N
Y �
o -O
c
c `°
N pp
� �
N �
m
R
C Y
� o
m a0
c c
u�o m
C C
O O
O
O O
v N
ay M
n �
� �
v v
d
16 Y
c c v
G V
V £
O a
.v, .�.
R f0
£ �
w w
0
3
h
O
0
�
t�^.
U
�
A
�
LI.
0
�
O
m v
L `
U ° c 3
0
I"' LL �
W M
� o
N
�S N
U °^
m p
Q � Cl L
a �m
v �
G 0
�
>
�
d
m
L
�
c
"u �
c m
� C
C �
LL
o �
ro
L
�a y
v m
N q
S
m V
O
N
O
.>
�
O
C
m
m
m
C
Y
a
�o
L
V
m
m
�
a �
` 0
c
� N
v v
C O
0
r
V R
C L
� �
� �
o �
N �
O
O
¢ O
E
c a
u �
N
3 �
` o
O ,�
] �
L �
L
3 �
o y
� C
� '�
O N�
3 R
m t
> R
a, E
>
m O
� C
�
� R
c
` a
d �
% 3
m �
Q O
»
� '>
� a
w 3
y Y
- O
N �
L �
S �
Y O
U
m c
� V.
c v
R
C �
�
o a
a% N
C
w 3
� `ro
Y >
N v
� «
> �
w
` c
t v
m �
O 9
S N
m �
0 5
O N
9
n d
O �
o £
C �
� a
o �
C �
O G
0
'� c
d � O
V - y
L � O
I- '6 ¢
0
9
LL
m
�
�
0
ol
O I
m
R
�
O
0
.°3
�
R
O
3
H
i
d
C
�
c
LL
r
a
�o
C
V
� � 3
s �
L � L
m ° t 3
N �p r
o � � �
0 0
m -a - o 0
±. � v fl.
O w O �
a Y �' Y
ry - m
c R 3 C
u
a p � m
s y o v
O C i. i,
� o p 'a
�
W V - C
_ �6 L N
> £
� v t� �
.d �° m �°
C n
v t�i C "O
� � v
v-� g Y
Q m ¢ o
� � C C
V U �
V £
� d j �
N O R �
7 V
„ a 3 �
N T � E
Y d � N
L 'F1 - p C
a�+
3 c c
w - -
« ° ui
o � ° Y
� 'Y
� 9 3 d
a R v �
� « 3
` w o
c � � v
� O
,c v p_ m
N � 41 O
� E " O
v , o a
� d C �n
� � O Y
3 a�+ - p �
3 � O
N U �
C V
V V _ �
a
v
a � v c
d � � o
y a � _
o � a ¢
> s a
c v m
N T y asy
- 6 - 0 G
� � 'v
m u �
t u
v £ m �
o v
c 3 > "�
ci m � �
w m o
w y � a
� C
O � £ v
o .v,-a °o
tp � V
� H 9 9
y � � a
N
m d m a
V V
� � � �
N R
N � � �
N m L O
� N
N
- a � m '�"
� 'c c m
R � � �
N m � �
m -� y -�
� v
L d d
V � N GO
y s v
0 3.°.s'
0 0 0 0
N N N N
th M M tt1
- 6 "6 '6 U
c c c c
�i 3 �i LL
LL
L C � m
� ._ .� .�
0 0 0 0
0 0
� �-
O O O O
e�l � �-1 ri
r+ o n r+
l0 N ei V1
m �n c �
d �-I N N
V C� l0 M
>
N -
C y
¢ c m
C y U
� C N _
m 3 v c
N O �
� ¢ � �
�
v v m �
N N LL V
c c ' ¢
£ � - o v
W w Q Q
R
0
3
N
° c
V T
a � a
fl � O
o ._
v c =
o w a
� � 3
N �p �
Y m
a
° c «
= C �
c 16
o d `o
.�
@ O R
i O
a �
N
N � C
� r N
N 0
e y �
;: o
_ 6
N �
2 Y �'
0 O N
0 0 @
� V N
C
ry w Y
C Y O
t m C
+. c o
O R
O C
� �
� � 3
� > u�
m m >
a u v
� L R
a a
� 9 a
N y
° a
m
� � Y
� q. d
S � v�i
� o a
¢ m m
O S1 �
V s+ O
- T � �
y G �
N U >
y '� W
L
o f- v
� + a
� V R
O v a.
Q Y
� d
2
O 9 S
C W !"
o c 3
Y �
> � O
v � ..
v o °'
�
a v o
� a �
Y � o
2 �
� Q N
y O �
a R
d � C
0 V R
`p_ ' �
fl ' O y
m
> p a .
_ y
C W � W
u �° a c
i � 3 �
V v >
� m
3 � � C
o a £ N
V �
T R Q �
O
U �' v eo
v .� � c
w =
H n, O :�
0
.'
N
a
R
S
m
Q
K
0
C
LL
m
_
�
0
0
W I `i
'1
�
I
ri
K
.�.
H
0
6
C
O
>
N
W
a
m
Y
�
N
61-��/
O
�
f^.
U
i
m
U
C
c
O
e
�
� a
i
U e o
F ti �
Z ,,,
W
G �
S v
U °
Q a � _
Q E O
m
°i O
O
O
J
c
V
H
C
" a
e m
t° c
C �
LL t
pf U
O
N
C
L y
y m
Q c
N t
o U
N
m
@
N
O
u
c
m
d
0
V
w
a`
O
d
3
N
C
0
`o �
u �
� o
� r
N y
F O
3
c o
o �
J o
V
.�. �
a
c m
3
E v
E Y
U �
� L
r r
m �'
-a o
W a.�
C �
m �
2
A �
�n N
Y
�
L ✓�
N
O 3
V -4
N �
Q p)
= �
s °
V
N ]
a �
x v
R O
C ++
v
E m
c w
O �
> W
� �
w '-
w v
,+ �
N O
- �
3 N
2 �
w s
� O
Y ry
T �
h d
v v
V �
N
C O
v a
Y 'O
N N
� C
O C
V �
d V
n t
c w
S �
� O
N �
t _
m >
c �
v �
£ E �
o E `o
] O �
� N p
Y
T �
m � p�
a �
O. O R
£ ° o
,°'. — a
W
Y 3 m
«° a
� V Y
C d
� a N
� � 3
� � w
� w �
N '6 O
� - S
H m m
00000000
m M m�n m m M ir�'j
- o a a v a a
C C C C C C C C
LL �� 3 3 3> 3
� LL LL LL � �
pp Y pp pp pp pp Y N
c c� c c c c��
m m e�n m m
u v v
o p o 0 0 0 0 0
O O
N N
a O O Q
� � � �
W e .��i O O O 0�1
C O M O ei O N
= � m v m � W '�,
` M v I
N
O
3
N
O
m
a `o
_ V �
ry O
S a
N � � N
2 s � ai
m �° � 'o
� s � � o
w — N - o
E «
C\ C y R O.
� � v O N
> 4 C £ � O
W O 0�� N U p
> v�i
� V i W C
o� a � �� a v
m o i m a� w¢ �
n « � \ � o v
F O
O `ti a w � v > `
O � � m o � � v
j � r a. N W �
C-C W N o0 - � O
� v 'a
n
� � £ £ a�i � 3 v
� C w iu v�i w��
w
u
c 3
�
� X
v
R �
« °'
.s.
V �
d y
o d
n �
m
m
y '°
`o �
3 �
W i
j .�
i y
� O
�
C C
N �
L p�
C �
O p
� �
�p O
m 'o
m °�
— �
N C
Y 1
o w
T �
m °
� u
A 3
C �6
o v
a
v v
� S
a �
o\ '�
o w
N Y
O �
� O
O j
.� m
m s
O >
O �
C d
c 3
0 1 O
� Y
N W
L o0
3 3
v o
� �
C Y
> L
v �
a 3
S �
N ^
C T
N 9
a
� �
c �
Y �
�
v
O V
R - 6
Y �
n �
� R
E °-
N F
Y
,. v
� c
v v
m a
£ a
y ' c
o
N i L
s .• �
° � o
F o �
d
e
u
c
.
L
LL
00
N N
M M
� �
C C
3 J
LL LL
m m
� c
� .�
� c
0 0
O O
0 0
vi vi
� V
r
a °
n
N
3 9
� �
> 3
N �
K j
� �
a v
m v
c �
� G
j R
O] d
V V
3 3
a a
N N
C K
O
0
N
R
O
3
N
oy-��
C.�
O
0
h
\
tr.
V
�
2
�
L:
O
�
�
ATTACHMENT D
DSI and PED Proposed Position Changes
Fund 320 Budget Revision - Spring 2009
ay�3�
Net PED Change 0.0 0.0 7.8 -1.0 -1.0 0.0 -0.2
Office o# Financial Services 3/25/2009
Net DSI Change -1.0 0.0 -4.8 -1.0 0.0 -8.4 -15.2
New Total DSI F7E 5.9 1.0 13.9 13.9 13.4 27.6 75.7
�1 �� �.
DSI Budget Amendment
Overview
Office of Financial Services
April 1, 2009
Revenue Review
Iding permit and pian review revenue began deciine
Iv in 2008.
adopted budget reduced revenue expectation by
based on 2008 experience.
indications in 2009 suggest revenues have not
amendment proposes a 7% decrease in 2009
:d revenues.
,J �:.35�'
� 2009 Revenue Monitoring
�,� n�a�,� ra.�eu
a,o e:n u� a. ��,. �� .rw .a� se oa �o. na romi
" w ss=r. <e% se� ssr= u�r szv sm� �zs: �ss� es, sai ss^r.
51333 39,1i1 8],]99 95.189 IIS8Ii Sl.]65 96,i8fi Ii515C I'K.,54i ]1296 6202] ]16EG I.0]2,G02
" . _ . . , .�- . _.. .n ! _-•-.-._ ^�...., . . " .-., , , r �_ _-
..._ e. , -
�,.
U09'Xc4vl..'�. <2W'1_II3J51 . _____85
� _ _ _"'. .'" .__ '__ — _ _ _ ...____ __" _._` _.�- _"___ __..____ _ ._
-9F6 -1Z616 -12616
18� -]2%
NmWaparRC�rnueVaruncc�oDarc �li,b16
f� Pamve&cVVUVwroW6 -12d%
�)llllt R¢V¢nYP TR/g¢(5
t
Jm Feb Nar Apr Hay Jun ]ui Au� Sep Oct ]m Da Total
p01Y 6� Sd% �6°e 83°h 9�� 9ffi/e 91°5 9�/e IOWo 9�� ]�/e Bi°o
3�q442 3i6,ti2 d]6,808 52].SES 56i,]2] 611655 9219] 60t,5¢ @4i66 60J,8;1 WO,Ot3 5EI,345 6,258136
£Ofa�,' Y .l. 7Wr922 285311, : : .-, _ . ._ __ . , -... ,.,�..
__ _,__ __. _..._., ::...�__. ....'__.. ...... .:"'"_'
pfievcC -]l,6]A -123A60 -12IOE0
-19]% -Ii8°o
NmWa4veRevmueVena�✓.e�oDare -IE3,W0
PucmUBCVazunce�oOatc -1'li%
u 3
Spending Adjustments
rganizational Restructuring
• Consolidate management of clerical support
• Reduce total number of divisions
re Financial Management
ing Trades Reductions
• Across the board work hour reduction from 40
hrs/week to 32 hrs/week
ift Heritage Preservation to PED
4
�� �� s
Personnel Changes
Reductions:
acancy:
y Retirement:
f Shift to PED
ditions:
DSI Change
(7.4) FTE
(6.0) FTE
(1.0) FTE
(1.0) FTE
(1.8) FTE
2.0 FTE
(15.2) FTE
5